CHOOSING and REPORTING the RIGHT PROCUREMENT METRICS Shannon

It feels like we’re spending more time on RFPs now. How’s that contract doing?

Types of Metrics Strategic Functional Operational • High level • Ties to broad strategic

Define. • What do you want to measure? • Why? • Where does the

Define. • What do you want to measure? • Percent of spend going through

Types of Audiences Executive Organization Contract • High level • How do you impact

Audience. • Who are you reporting this to? • What level of metric is

Audience. • Who are you reporting this to? • Executives • What type of

Align. • Which institutional or departmental goals does it align with? • How?

Align. • Which goals does it align with? • Our goal to provide savings

Filter. • Can be easily accessed? • Measures something meaningful? • Tied to goals?

Red Flags × Takes a lot of time to run × Takes a lot

Practice! Pick a metric: • Average time from requisition received to PO generated •

Questions? Further reading: EAB “Selecting Core Performance Metrics” EAB “Procurement Functional Maturity Diagnostic” Thank

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CHOOSING and REPORTING the RIGHT PROCUREMENT METRICS Shannon Wampler University of Virginia

Current State in Higher Ed

Why Should We Measure?

It feels like we’re spending more time on RFPs now. How’s that contract doing? What do you guys DO over there? How much money are you saving us?

Define. Audience. Align. Filter.

Define

Source (equest. com)

Types of Metrics Strategic Functional Operational • High level • Ties to broad strategic goals • Departmentlevel • Measures what you do • Size and scale • Use sparingly

Define. • What do you want to measure? • Why? • Where does the data come from? • How will you measure it?

Define. • What do you want to measure? • Percent of spend going through contracts. • Why? • To see if departments value our contracts. • Where does the data come from? • Spend system – by vendor? • How will you measure it? • PO $ flowing through vendor? Transactions? Item level?

Audience

Types of Audiences Executive Organization Contract • High level • How do you impact the whole University? • Departmentlevel • How do you impact Procurement’s operations? • Contractspecific • How is the contract performing?

Audience. • Who are you reporting this to? • What level of metric is this? • Do they match?

Audience. • Who are you reporting this to? • Executives • What type of metric is this? • Strategic…or functional? • Do they match? • What do you think?

Align

Align. • Which institutional or departmental goals does it align with? • How?

Align. • Which goals does it align with? • Our goal to provide savings to the University • How? • Our contracts provide savings… • Are we assuming our contracts provide savings?

Filter

Filter. • Can be easily accessed? • Measures something meaningful? • Tied to goals? • Exist in context? • Have an audience? • Triggers action? • Are they balanced in type and audience?

Red Flags × Takes a lot of time to run × Takes a lot of time to assemble × Not automatically calculated × So what?

Practice! Pick a metric: • Average time from requisition received to PO generated • Number of procurement transactions • Number of requisitions processed electronically • Procurement technology cost as a percentage of spend • Percentage of transactions flowing from procure to pay electronically without manual intervention

Define. Audience. Align. Filter.

Define. • What do you want to measure? • Why? • Where does the data come from? • How will you measure it?

Audience. • Who are you reporting this to? • What level of metric is this? • Do they match?

Align. • Which institutional or departmental goals does it align with? • How?

Filter. • Can be easily accessed? • Measures something meaningful? • Tied to goals? • Exist in context? • Have an audience? • Triggers action? • Are they balanced in type and audience?

Communicate

Questions? Further reading: EAB “Selecting Core Performance Metrics” EAB “Procurement Functional Maturity Diagnostic” Thank you! Shannon Wampler saw 2 w@Virginia. edu